In late November 2000, Chunghwa Telecom Co, Ltd, once the monopoly operator owned by the Taiwanese government, was on the road to privatization. Mr. C.K. Mao, the company's chairman, who led the work only three months earlier, after its prior chairman resigned unexpectedly in the midst of chaos brought by the resistance of their employees, who fear losing their civil servant status after privatization. Mao was also before the upcoming deregulation of the telecommunications industry in the island, which will lead to new competitors in the fixed-line, in addition to the already competitive mobile communication segment, where the once-dominant market share of the company was severely damaged. Mao was to decide on a pricing strategy for various product line of the company, including fixed-line, mobile services, as well as data transmission. He also must think about how to revise the system of compensation in order to better motivate their employees in a deregulated market and communicate these changes to the union workers. "Hide
by Paul W. Marshall, Michael Chi-ta Chen, Keith Chi-ho Wong Source: Harvard Business School 17 pages. Publication Date: April 9, 2008. Prod. #: 808137-PDF-ENG
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